Section 378ZI General and other reserves – Companies Act 2013

Section 378ZI of Companies Act 2013 as amended by the Companies (Amendment) Act, 2020. Provisions and rules for General and other reserves.

Amended and updated notes on section 378ZI of the Companies Act 2013 as amended by the Companies (Amendment) Act, 2020 and Company Rules made there under. Detail discussion on provisions and rules related to General and other reserves.

Chapter XXIA PART-VI (Section 378ZE to 378ZJ) of the Companies Act 2013 (CA 2013) deals with the provisions related to finance, accounts and audits. Section 378ZI of CA 2013 provides for General and other reserves.

Recently, we have discussed in detail section 378ZH (Donation or subscription by Producer Company) of CA 2013. Today, we learn the provisions of section 378ZI of the Companies Act 2013.

In exercise of the powers conferred by sub-section (2) of section 1 of the Companies (Amendment) Act, 2020 (29 of 2020), the Central Government appoints the 11th February, 2021 as the date on which the provisions of section 52 of the Companies (Amendment) Act, 2020 shall come into force.

Accordingly, the provisions of section 378ZI are effective from 11th February, 2021. You may refer Notification No. S.O. 644(E) dated 11-02-2021. In this article, you will learn detail of the provisions of section 378ZI the Companies Act 2013.

Name of ActThe Companies Act 2013
Enacted byParliament of India
Administered byMinistry of Corporate Affairs (MCA)
Number of Chapters29
Number of Sections484 (470-43+57)
Number of Schedules7
You are reading:
Chapter No.XXIA (PART-VI)
Chapter NameFinance, Accounts and Audits
Section No.378ZI
Section NameGeneral and other reserves
Monthly Updated EditionCompany Law PDF

Section 378ZI: General and other reserves

Section 378ZI(1) of Companies Act

Every Producer Company shall maintain a general reserve in every financial year, in addition to any reserve maintained by it as may be specified in articles.

Section 378ZI(2) of Companies Act

In a case where the Producer Company does not have sufficient funds in any financial year for transfer to maintain the reserves as may be specified in articles, the contribution to the reserve shall be shared amongst the Members in proportion to their patronage in the business of that Company in that year.


Open Demat Account

For Investing or Trading

(Best Investing and Trading Platform in India)

Learn More